- XRP is bearish in the short-term after a failed upside break from a falling wedge pattern
- Medium-term outlook remains bearish in line with the prevailing downtrend
- XRP / USD pair is slowly edging towards the key 0.2500 level
XRP / USD Short-term price analysis
In the short-term, XRP is bearish after a failed bullish breakout from a falling wedge pattern. Pressure is currently building to the downside with the XRP / USD pair gradually easing lower.
Technical indicators are currently neutral; traders still appear to be very cautious towards XRP as the popular cryptocurrency approaches its 2018 trading low.
It is certainly worth noting that if sellers fail to break the January 29th trading low, a third important higher low will have been established, which may provide encouragement to short-term bulls.
Pattern Watch
A smaller falling wedge pattern appears to be forming as price consolidates outside the larger falling wedge pattern.
XRP / USD H4 Chart (Source: TradingView)
MACD Indicator
The MACD indicator is currently neutral on the four-hour time frame, which is largely consistent with the tight range bound trading action currently seen in the XRP / USD pair.
RSI Indicator
The Relative Strength Index appears to be correcting towards the neutral line.
XRP / USD Medium-term price analysis
Ripple is bearish in the medium-term and is showing signs that another downside breakout may soon occur as price drifts towards the lower end of the XRP / USD pair’s six-month trading range.
A break below the $0.2500 level would likely accelerate downside pressures towards the $0.1700 to the $0.1800 region. This technical area was formerly a key consolidation zone during late 2017, right before Ripple launched its bullish breakout.
Pattern Watch
The downside projection of the failed inverted head and shoulders pattern on the daily time frame has largely played out. As previously stated, the main theme to watch in the medium-term is Ripple’s ability to start creating new lower lows or higher highs away from its six-month trading range.
XRP / USD Daily Chart (Source: TradingView)
MACD Indicator
The Momentum indicator on the daily time is currently flat and provides no clear trading signal.
Stochastic Indicator
The Stochastic Indicator on the mentioned time frame appears to be overstretched with relatively little scope for further downside, which is a potential bullish development over the medium-term.
Conclusion
XRP remains bearish in the short and medium-term, although some bullish signs are starting to emerge. If an upside recovery takes shape in the short-term, a third higher low will have formed on the daily charts.
Traders should also watch for a break from XRP / USD pair’s six-week trading range; if the break fails to occur, we are likely to see more relatively limited range bound trading.
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XRP
(XRP) - Price
$0.303 - Market Cap
$12,452,188,611.65
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